Inspection Contingency

An inspection contingency is a clause in a homebuying contract that provides a buyer cause to abandon the transaction if an inspection reveals a material defect that was not part of the disclosures provided by the seller. Most states include an inspection contingency in their standard contracts, and those that don't generally provide some other mechanism for the buyer to back out in the event of something material being found during an inspection.

The inspection contingency is limited to a time period defined in the contract, often called an inspection contingency date.

This document is a community edited guide, is not legal advice, and is subject to changes, modifications, and may contain inaccuracies or out-of-date information. As with any important financial transaction, consult a real estate professional and/or an attorney. See our terms of service for more information.

What is Amitree? Amitree is a free service to help simplify the process of buying a house. Buyers and real estate agents can sign up for a free Amitree account to manage their home buying experience online.